If it gets you to the windows log-on screen, I don't think the drive is hosed. I DO think that it has some bad/corrupt sectors on it now.
I haven't used too many utilities, so try out their advice first. I just run chkdsk /f or chkdsk /r. Once you find the bad areas of the drive, it tags them and won't use them again. So, after all that, you'll have to re-install windows.
Brian has the good idea if you want to get up and running right now, but you'll eventually have to get to that hard drive. Myself, I'd want to get it worked out first.